Agglomeration effects are real. Research has constantly shown that people working in high productivity area generate more wealth than the same people working outside high productivity areas.
The real problem, IMO, is that workers in the tech industry have voluntarily destroyed these agglomeration benefits by using the short period of power workers had during/after the pandemic to insist on work from home instead of better worker protections.
As a result, it’s very possible that high productivity areas in the U.S. are no longer that, and remote work has reduced all Americana’s productivity, making it impossible to justify the higher cost of living and salaries in big cities.
The real problem, IMO, is that workers in the tech industry have voluntarily destroyed these agglomeration benefits by using the short period of power workers had during/after the pandemic to insist on work from home instead of better worker protections.
As a result, it’s very possible that high productivity areas in the U.S. are no longer that, and remote work has reduced all Americana’s productivity, making it impossible to justify the higher cost of living and salaries in big cities.